BULLION LATEST 06/10: Gold steady as market awaits US payrolls data

The spot gold price was quoted at $1,268.25-1,268.65 per oz as of 04:46 BST, down $0.35 on the previous session’s close. Trade has ranged from $1,267.15-1,269.73 so far today.

• Gold remained subdued as market attention turned towards the release of the US jobs report later on Friday.
• The official jobs report on Friday is expected to show the USA adding 82,000 jobs in September, down from 156,000 in August due to disruptions caused by hurricanes in the country.
• A stronger dollar on the back of positive US data also checked any gains in the yellow metal.
• The dollar index, which measures the dollar’s value against a basket of six major currencies, last traded at 93.99. It rose to 94.01 at one point on Friday, its strongest level since August 17, drawing support from US data released on Thursday which showed that orders for core capital goods in August were stronger than previously anticipated, while weekly unemployment claims came in at 260,000, below the forecast of 270,000.
• “The dollar was also aided by a rise in US Treasury yields amid hawkish comments from [US Federal Reserve] speakers…,” National Australia Bank said on Friday.

Silver, PGMs

• In the other precious metals, the spot silver price climbed $0.015 to $16.575-16.625 per oz. Platinum increased $3 to $912-917 per oz while palladium was up $1.50 at $937-942 per oz.
• There is no trading on the Shanghai Futures Exchange as Chinese markets are closed from October 2-6 due to China’s week-long National Day holiday.

Currency moves and data releases

• The dollar index was down 0.01% to 93.91 as of 02:46 BST after reaching as high as 94.01 on Thursday – its strongest level since August 17 when it traded at 93.96.
• Kathy Lien, managing director of FX strategy for BK Asset Management, noted that the latest string of positive US economic reports including jobless claims falling, the trade deficit narrowing and the amount of factory orders increasing lent support to the dollar.
• In other commodities, the Brent crude oil spot price fell 0.15% to $55.96 per barrel as of 03:00 BST. The dip in oil prices is primarily due to a recovery in US crude exports and falling European refining margins; both of which are major factors undermining the Organisation of Petroleum Exporting Countries efforts to curtail production.
• In Europe, both the pan-European Stoxx 60 and IBEX 35 posted gains after news emerged that Spain’s Constitutional Court has suspended a session of the Catalan Parliament due to take place Monday.
• In today’s economic agenda, focus will be on US employment data with average hourly earnings, the non-farm employment change and unemployment figures due.
• In addition, US Federal Open Market Committee members William Dudley and Robert Kaplan are speaking.